Canadians express confidence on tax knowledge

But Canadians are less confident of their understanding how investments are taxed.

An overwhelming majority of Canadians are feeling confident that their 2013 tax returns will take advantage of all the tax deductions, tax credits and other tax savings that may be available to them.

So reports BMO Nesbitt Burns in its fourth annual national tax study.The survey was conducted by Pollara between March 14 and March 17, 2014 with an online sample of 1,007 Canadians.

The research indicates that 70 percent of Canadians plan to file their taxes before the April 30 deadline, with 25 percent having already filed.

The study also finds that, when Canadians were asked how knowledgeable they felt about issues related to their tax returns, they felt the most aware of how their income is taxed generally (77 percent) and the tax implications of contributing to a Registered Retirement Savings Plan (75 percent).

However, they are less confident of their understanding how investments are taxed, with only 41 percent reporting that they are familiar with how capital gains and dividend income are treated from a tax perspective.

The study also examined what those who expect a tax refund plan to do with the money: